Carne Group: European asset managers apprehensive over near future
Traditional managers set to be hit harder, according to Q3 survey
Traditional managers set to be hit harder, according to Q3 survey
Fee compression remains unchanged in most sectors, writes Hannah Williford
But costs are creeping up as more existing funds reposition their offering
Investors have not felt much benefit
And sets founders’ fees at 0.10%
First value assessments triggers fee changes that will save investors £8m
A paradigm shift to sustainable long-term and performance-based fee structures could lie ahead
Only 13% of Ucits funds may comply with new fee rules proposed by German regulator, says consultancy
Blackrock has undercut Vanguard by slashing fees on an iShares emerging markets product and matching its rival’s pricing on four European equity funds.
Fidelity International has stepped up the passives price war with the launch of six low cost Irish-domiciled equity index funds and the reduction of pricing on three existing UK-domiciled index funds.
Fidelity International’s move to change its charging structure to a performance-linked fee has been welcomed but is seen as a risky move which may not be sustainable, according to fund selectors around Europe.
Fund selectors applaud the “courageous” step by Fidelity to introduce performance-related management fees across all its funds by next year. But will the move really improve long-term performance after fees, and is the new model sustainable with most active funds failing to beat their benchmark?